Top 10: Countries Leading the Energy Transition
In a bid to confront the urgent challenges presented by climate change, the energy transition — the shifting from fossil fuels to renewable sources — has become a critical priority for many countries around the world.
As a result, a whole host of countries are increasingly investing in clean energy technologies, striving to meet net-zero emissions goals and reshaping their energy grids.
Energy employment reached nearly 67 million in 2022, with more than half employed in clean energy, the International Energy Agency (IEA) reports.
Renewable Energy Capacity Growth: In 2022, global renewable energy capacity increased by 9.6%, adding 295 gigawatts (GW) of capacity. Solar and wind power were the largest contributors, with solar energy alone accounting for about 60% of the new installations, highlighting its dominance in the renewable sector.
The body also declares that in 2022, renewable energy capacity expanded by 295GW, with solar energy leading the growth by adding 191GW. This brought the global cumulative renewable capacity to 3,372GW, a 9.6% increase from the previous year.
Of this, solar power alone accounts for nearly two-thirds of the worldwide total renewable capacity added during this period.
Similarly, the IEA — as well as the International Renewable Energy Agency (IRENA) — highlight that global investments in renewable energy saw a significant boost last year, with a record-breaking US$1.7tn invested in clean energy technologies. This is a 25% increase from 2022, driven by policies that favour clean energy solutions and the economic competitiveness of solar and wind technologies.
In light of this, we run through 10 countries per 100,000 capita leading the energy transition worldwide, according to data gathered by Smart City Expo.
10. Japan
Energy generated per 100,000 capita: 84.31MW
Following the Fukushima nuclear disaster in 2011, Japan has been on a mission to drive renewable energy development country-wide. Japan’s total electricity generation is now more than 20% powered by renewables, with the aim of reaching between 36% and 38% by the end of the decade.
Its pursuit of renewables is part of its plan to decrease CO₂ emissions and dependence on imported fossil fuels. Renewables are mainly used to generate electricity, though renewable technologies can also be used for heating in homes and buildings. Renewable biofuels are also an emerging technology solution, particularly when it comes to decarbonising sections of Japan’s transport sector.
Japan has been the target of criticism though, as it has been singled out as a country derailing the energy transition for other nations thanks to its approach and financing of LNG projects.
“Japan could achieve its 2050 goal as ammonia and hydrogen are expected to become carbon-free fuels for thermal power and Japan's ultimate weapon on the road to carbon neutrality,” Takeo Kikkawa, Vice President of International University of Japan said.
9. Italy
Energy generated per 100,000 capita: 86.99MW
As part of the country's energy transition, Italy has committed to phase out coal use in electricity generation by 2025 and replace it primarily with gas-fired and renewable generation, supported by a reinforced transmission infrastructure, the IEA says.
However, its tight ties to fossil fuels remain. Despite its significant steps in its green transition over the past 10 years, Italy’s current government is also focused on making the country a "gas hub" in the Mediterranean Sea.
Despite this somewhat backwards step, Italy has scaled back its reliance on Russian coal and gas, alongside other nations following its invasion of Ukraine.
The Italian government has projected the need to introduce around 5GW of fresh renewable generation capacity each year from 2020 to 2030 to meet Italy’s National Energy Climate Plan for 2030.
8. Switzerland
Energy generated per 100,000 capita: 95.84MW
Enabling faster rollout of renewables can help Switzerland reach climate and energy goals, an IEA policy review says.
The country, known for primarily relying on hydropower as a source of renewable energy, has seen its solar power space grow significantly in recent years.
In Switzerland, renewable energies now account for approximately a quarter of Switzerland’s total energy consumption, with its installed capacity evenly distributed between solar power and hydroelectric power, each contributing 4GW.
The World Economic Forum’s (WEF) Fostering Effective Energy Transition 2024 report highlights Switzerland among the countries making significant progress in the energy transition, alongside Northern European countries like Sweden, Denmark and Finland.
7. USA
Energy generated per 100,000 capita: 97.74MW
Since the start of the decade, the US has seen a nearly 60% surge in clean energy investment, leading to the creation of more than 310,000 jobs in the sector, according to the IEA.
The country ranks second in the world for installed green energy, despite it also being the second most polluting country, with fossil fuels still accounting for 79% of the energy it consumes.
2023 was a record-breaking year for clean energy deployment across the US, with increasing installation rate of solar and energy storage, growing EV sales and the number of planned domestic manufacturing facilities.
Wind dominates the US’ renewables landscape, with more than 133GW of installed capacity, with solar following behind at 113GW.
According to the Solar Energy Industries Association (SEIA), there are five million solar installations in the US, more than half of which have been added since 2020.
6. Belgium
Energy generated per 100,000 capita: 100.92MW
Due to geopolitical events and the acceleration of climate change and its subsequent effects, Belgium has decided to expedite its energy independence, particularly regarding fossil fuels.
The country is transitioning from a nuclear-based energy market to one focused on renewables to move toward this goal, but its size presents challenges when it comes to the installation of wind farms.
To overcome this, Belgium’s commitment is centred on photovoltaic power — with 7GW of installed capacity, compared to 5GW of onshore and offshore wind power.
Belgium is working with the UK and Ireland in commissioning an interconnector between the wind farms off the Irish coast and the Princess Elisabeth energy island, establishing an energy corridor between the three countries and showcasing close cooperation in offshore wind energy.
“The key now is to implement actions to follow through on our ambitions and power our green future,” said Belgian Energy Minister Tinne Van der Straeten.
5. Portugal
Energy generated per 100,000 capita: 116.75MW
In Portugal, a previous goal to reach 80% renewable energy in its electricity production has been brought forward by four years to 2026. This, it is predicted, will require the installation of substantial capacities in onshore and offshore wind as well as photovoltaic energy. It also will increase the integration of green hydrogen into Portugal’s energy mix.
If Portugal — Euronews’ Green Country of the Month for July — continues on this hyperfast trajectory, it will reach net zero a few years earlier than planned (and legally required) by 2045.
“Portugal is entering the next stage of its energy transition,” Matt Ewen, an Analyst at Ember, said.
4. Greece
Energy generated per 100,000 capita: 122.09MW
According to the IEA, coal fired generation — once the main source of electricity in Greece — will be phased out by 2028 at the latest. As well as this, €5bn (US$5.5bn) has been committed to assist those impacted by this transition.
Greece leverages its sunny climate to produce solar power, with the country’s installed PV capacity, 6GW, surpassing that of other renewable energies — though this remains relatively low compared to other nations.
By the end of 2023, Greece had installed a total of 72,500 solar power generation systems. Second is wind power, with a capacity of 4GW.
Greek Prime Minister Kyriakos Mitsotakis said: “The growth of the economy is inextricably tied to making ourselves as energy independent as we can.
“Greece can be a paradigm of how energy transition and climate action can create jobs and sustainable growth,”
3. Spain
Energy generated per 100,000 capita: 130.44MW
Over the past 15 years, Spain has emerged as a leader in renewable energy, with wind generation capacity doubling and solar capacity increasing eightfold since 2008.
The country’s electricity system hit a new clean milestone in 2023 as electricity generated from wind exceeded electricity output from fossil fuel sources for the first time.
As of 2023, more than 50% of Spain's electricity comes from renewable sources, with wind contributing 24% and solar photovoltaic 14%. Additionally, nuclear and combined-cycle gas account for 20.3% and 17.2% of the power mix, respectively, resulting in over 70% of the energy being CO₂-free.
Key factors in this success include supportive government policies, public investment and corporate leadership from companies like Iberdrola, highlighted by sister title Sustainability Magazine as one of the best renewable energy companies in Europe and clinched the top spot in its Top 100 Companies in Sustainability list.
2. Germany
Energy generated per 100,000 capita: 161.09MW
Translated as Energiewende in German, Germany’s energy transition involves the country working toward 80% renewable energy generation by 2030 as well as for carbon neutrality by 2045, five years ahead of the 2050 target.
The country’s renewable energy capacity stands at 130GW, with 67GW coming from solar power and 64GW from wind. Interestingly, despite its lower levels of sunlight, Germany produces more solar energy than both Spain and Italy combined.
German politician Rainer Baake said: “The energy transition is possible and it is affordable. It is of utmost importance that we look at the transition not as a burden, but as an opportunity.”
As Germany bids farewell to nuclear energy — one of its main energy sources – in favour of greener alternatives, it is a leader setting an example as to how countries’ economies can be virtually climate-neutral by 2050.
“Germany’s experience offers valuable insights and can serve as an example on how to wean a major economy off fossil fuels, even for countries with their own unique conditions and challenges,” said the Clean Energy Wire, explaining how although understanding Germany’s huge undertaking is tough, others should take note and follow its example.
1. The Netherlands
Energy generated per 100,000 capita: 171.93MW
Topping this list is the Netherlands, a country often celebrated as a key European energy transition driver.
In 2023, the Netherlands generated more of its electricity from solar farms than any other major European economy and also generated more than half of the country’s total electricity output from clean sources. This is all thanks to record generation from solar and wind farms and the lowest electricity generation total from fossil fuels since the millennium.
Its substantial solar power capacity, coming in at 23GW, is attributed to widespread residential solar panel installations. Its 8GW of wind power comes from offshore sites such as Gemini, Borssele and Hollandse Kust Zuid — the latter of which being one of the largest offshore wind farms in the world.
Manon van Beek, CEO of grid operator TenneT said: “Supply and demand of electricity must be constantly in balance, otherwise the lights will not be on.
“In the Netherlands we want to have a climate-neutral economy in twenty years, so we are busy creating the electricity network that is required for this.”
**************
Make sure you check out the latest edition of Energy Digital Magazine and also sign up to our global conference series - Sustainability LIVE 2024
**************
Energy Digital is a BizClik brand.
